Reasonable Operating Expenses definition

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project, including all payments and deposits required under this Agreement and any of the Loan Documents, and that comply with the requirements of 24 C.F.R. 232.1007, or successor regulation.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedBook a Demo

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project, including all payments and deposits required under this Security Instrument and any Loan Document, and comply with the requirements of 24 C.F.R. 232.1007, or successor regulation.

Reasonable Operating Expenses means the reasonable expenses and payments that arise from the purchase of goods or services which are exclusively used for the operation, maintenance, and routine repair of the Project (including all payments and deposits required under this Agreement, the Note, or the Security Instrument), or as otherwise permitted by Program Obligations.

Examples of Reasonable Operating Expenses in a sentence

• Undocumented expenses shall not be considered Reasonable Operating Expenses.

• Reasonable Operating Expenses do not include amounts paid for betterments as defined in the Property Jurisdiction or the Improvements unless determined by HUD to be prudent and appropriate.

• Any income of the Project in excess of disbursements for HUD-approved construction and development costs and Reasonable Operating Expenses, as such excess is determined by HUD, shall be treated as a recovery of construction cost, except as otherwise allowed in Program Obligations.

• Neither IRS audit costs nor costs of tax return preparation for partners, members, shareholders, Principals or Affiliates of Borrower are considered Reasonable Operating Expenses.

• Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations.

More Definitions of Reasonable Operating Expenses

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project, including all payments and deposits required under this Security Instrument and any Loan Document.

Reasonable Operating Expenses means the reasonable expenses and payments that arise from the purchase of goods or services which are exclusively used for the operation, maintenance, and routine repair of the Project (including all

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project and that primarily benefit the Project as opposed to Borrower or as permitted in Program Obligations.

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project and that primarily benefit the Project as opposed to the Borrower’s Principals or Affiliates, or as otherwise permitted by Program Obligations.

Reasonable Operating Expenses means expenses that arise from the operation, maintenance 147 and routine repair of the Project, including all payments and deposits required under this 148 Agreement and any of the Loan Documents, and that comply with the requirements of 24 C.F.R. 149 232.1007, or successor regulation. 150 151 “Residential Agreement” means a lease, admission agreement or other resident agreement 152 between Operator and a resident setting forth the terms of the resident’s living arrangements and 153 the provision of any related services. 154

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project, including all payments and

Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Project, including all payments and deposits required under this Agreement, any Loan Document, and that primarily benefit the Project as opposed to Borrower’s Principals or Affiliates, or as otherwise permitted by Program Obligations. Salaries or other compensation to Affiliates of the Borrower or entities with an Identity of Interest with the Borrower, except to the extent approved by HUD, including without limitation through Program Obligations, shall not be considered Reasonable Operating Expenses and shall be deemed Distributions.